Are We at Peak Amazon?

November 9 2019 by James Brumley for The Motley Fool

It's difficult to argue that Amazon.com (NASDAQ:AMZN) isn't a smashing success story. It's never been a wildly profitable company boasting wide margins. But, it makes up for thin margins with sheer size. The organization has grown to service roughly half of the United States' total e-commerce market, according to data from eMarketer, and it's successfully waded into the brick and mortar world with divisions like Whole Foods Market and a budding chain of physical bookstores.

There's going to come a point in time, however, when Amazon runs out of places and ways to cost-effectively expand. We may be nearing that point, if we're not there already.

Amazon.com is less of a destination now than it used to be

Finally, research outfit First Insight shared some enlightening and curious data -- consumers are increasingly disinterested in Amazon.com. As of September of this year, 55% of respondents to the First Insight survey say they'd rather shop at Walmart than Amazon, an increase from 47% a year ago. And, respondents who were buying from Amazon.com six or more times per month fell from 80% two years ago to 40% in the current year. Conversely, First Insight's data suggests that the percentage of Amazon shoppers that only buy from it two or fewer times per month has grown from around 11% in 2017 to almost 40% now.

First Insight's CEO Greg Petro explained: "The excitement of the Amazon box coming to your house is kind of dwindling off."

Read the Full Article at The Motley Fool

trends  Amazon  consumer study  Ecommerce/Catalog  future of retail  retail trends  online shopping  Walmart  CONSUMER REPORT

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